friendship. >> i agree with that one. courtney tweeted facebook is my friend. with my husband and i living in hawaii with the army it helps me to keep in touch with family and friends back home. thanks everybody who responded. >> "fox & friends" starts right now. >>gretchen: good morning. it is thursday, april 11, 2013. i'm gretchen carlson. thanks for sharing part of your day with us today. first responders freed after being held hostage by a man who tricked them with a fake call for help. how the standoff ended and what we know about the dead suspect. >>steve: while you were asleep, a wild storm in the midwest with tornadoes and freezing temperatures behind them. those twisters now on the move. we'll show you where they're heading on this thursday morning. >>brian: the four-year-old who lives alone, wraps himself in tin foil while doing the robot. this is not my biography. it is kind of funnyful you

find out he's collecting social security for doing all of those things. "fox & friends" starts now. >>steve: not that there's anything the matter with wrapping yourself in tin foil dancing. >>gretchen: maybe he's from another planet or trying to make connection with another planet. i'm glad you clarified it wasn't your autobiography because there were some people wondering. >>brian: that is true. i have no at that time -- i have no tattoos. >>steve: we have obscured that person's identity. i hope after he's done with the tin foil, whatever that is, blouse and gloves and antlers, he recycles. >>brian: he is the only man in america still getting uhf. >>steve: he has to turn this way. >>brian: if he goes like

this, it is a circle antenna. that's the only way you get wrour wrestling. -- get your wrestling. i should have said disability instead of social security. >>steve: we'll tell you the whole story in a minute. right now we've got a lead story. >>gretchen: that gunman who held fire fighters hostage inside his georgia home shot dead. that explosion set off by a swat team after several hours of negotiations. they stormed the gun man's home exchange fire with him. the gunman called 911, faking a heart attack. five fire fighters responded. when they arrived he took them hostage only letting one of them go to move the fire truck. >> i kept looking out the window to obviously see what was going on and then you heard it. there was a sense of relief

>>gretchen: the gunman wanted his power and cable turned back on. he was also having financial problems. >> the u.s. sending this warning to north korea: you're coming very close to crossing a dangerous line. north korea positioned two missile launchers on its east coast which have a range of 2,500 miles, could be launched at any time. >> what's significant about this test is they're apparently going to do it from a mobile launch platform which means something they can move around and set off the launch much more quickly than if they have to put it on a launch pad that we can see from space. >>gretchen: the u.s. says it wants to tone down the rising tensions but kim jong un's regime is making that difficult. >> it is a prison prayer fight for american taliban fighter john walker lindh. his lawyers want a judge to find a federal bureau of prison in contempt. they say muslim inmates are only allowed to pray together three times a day, not the five required by their faith.

>> a hero's journey complete. a soldier who lost his ring during the civil war -- he died in 1932 but his ring made its way home. in 2005 a relic hunter found it in a construction site. that hunter presented that ring to a distant cousin this week. those are your headlines. >>steve: this headline: an extreme weather alert on this thursday morning. take a look at this incredible picture snapped just as lightning struck the gateway arch in st. louis, missouri. this morning tens of thousands of people throughout the midwest are waking up in the dark and the cold after tornadoes knocked out electricity, and now the storm is heading to the east. maria molina has got the kind of -- this kind of map behind you, maria, you really don't see this time of year, do you? >> it is that time of the season where we do get some severe weather, so it's not

that unusual. what is unusual is how widespread the system is. we're talking about severe weather anywhere from texas up into parts of new jersey. we had lightning out here in the new york city area. i woke up in the middle of the night to that loud thunder across the area. really strong storms, very powerful storms, cold front headed east. that is why we are seeing severe weather. we have two particular areas hit hard by tornadoes or possible tornadoes. they have not been confirmed yet. the national weather service needs to survey the damage this morning once the sun does come out. one of those counties is van buren in arkansas where we have reports of trees down, houses damaged. in st. louis county, a particular town, hazel wood, we have video of that, we have reports of damage to structures. you can see on the video, video of the damage. trees down impacting homes and a very rough morning for many people out here across this area in missouri. this is hazelwood in missouri. extreme stuff. the storm headed eastbound today. we're talking about more possible severe weather not

just in the form of tornadoes and damaging wind and large hail, but even snow. we're talking up to a foot of snow across the minneapolis area and freezing rain. there is an ice storm warning in effect across southeastern parts of minnesota and parts of wisconsin because we're talking about over a half an inch of ice possible out across that area. that could itself bring power lines down and also trees down. that severe threat stretching from ohio into the florida panhandle. >>steve: crazy weather day. maria, thank you very much. >>brian: president obama continues his charm offensive dining with several republicans last night. some say as many as 12. but it looks like his new budget will still face quite a battle. we're live in washington with the details. we have a long road ahead of us still. >> it's going to be a long, hot summer and a lot of debate on both sides. hours after the president unveiled his spending plan, he followed up with a tool from his charm offensive

campaign, hosting republican senators at the white house for dinner. this as they tried to swallow the proposed budget plan which calls for nearly $300 billion in new spending. at the same time it does outline $580 billion in new revenue over the next decade, a solution white house press secretary jay carney says is much more responsible than that of house budget committee chairman paul ryan. >> you don't have to go the route of chairman ryan which is to devastate programs that help the middle class, block grant and slice down medicaid, so that families that rely on medicaid, including families who have children who are disabled. you don't have to voucherrize medicare and shift thousands of dollars of costs annually on to vulnerable seniors just to reduce the deficit. >> obama says his budget is a compromise bridging

republicans and democrats. but if you put the two plans side by side, you can really gauge the debt comparison between the president's plan and paul ryan's plan. the white house budget claims billions of dollars in tax increases on the wealthy including a 28% cap on itemized deductions. ryan is critical of the fact the president's budget still has new taxes, new spending and a deficit reduction that he says isn't responsible. >> i don't think he's learned the lesson of economics or of history, and he continues to repeat the same mistakes that have been made. if we have any value, republicans, house of representatives, divided government, it is that we're not going to help him repeat these mistakes. >> to recap, ryan's budget sought to completely eliminate the deficit by 2023. the president's plan would leave us in a deficit of more than $430 billion in that same time period. we have a very long summer to go. >>steve: plenty to choose from. >>brian: we still have immigration coming down the

pike because we have a breakthrough as well as some type of gun legislation. >>gretchen: those probably will come together before anything on the budget. it's kind of business as usual. republicans are upset because the president's plan is a lot in their minds of tax and spend. and obama's base, president obama's base is upset because he's even considering touching entitlements. yesterday we talked about the fact that when you have a democratic president and you have the left part of that party upset with you, maybe there's something going on that the republicans can see a glimmer of hope with. remember back in 2008, this is why that base might be upset with regard to entitlements. >> john mccain's campaign has gone further suggesting the best answer for the growing pressures on social security might be to cost of living adjusts or raise the retirement age. let me be clear, i will not do either. >>brian: it's that part right there: the cost of living adjustment.

that is what the president has put into his budget plan. and one of the reasons he said that is, he said the republicans asked for it, so now it's there. in return, republicans, i get $1.1 trillion worth of new taxes; right? republicans have said no. nevertheless, republicans are furious because he promised -- and a lot of people voted for him because he would never change anything in regard to social security. >>brian: he does say he's going to raise taxes by $580 billion. he also wants infrastructure spending another $50 billion and believe it or not cut defense more, $100 billion over the next ten years. >>gretchen: i think the democrats could be really upset with president obama if he had gone along with what he suggested two years ago when they were talking about the debt commission and debt crisis, which was that he was going to change the age of social security. i think if you're a democrat you should maybe not complain as much about his current plan because it

could have been not in line with your thinking as much as this one is. >>steve: let's go to utah. the attorney general out there, they were trying to crack down on social security and disability fraud. take a look. this man right here, the robot dancer, he claims sore muscles were so bad he couldn't leave his house. unfortunately for him, he posted this video -- >>brian: he looks stiff here. >>steve: he does look stiff, a little robotic. he posted this on youtube as well as him playing air guitar. he is absolutely fine according to the attorney general. he's been checking plenty of money on the dole. the government out in utah said not so fast. you're committing fraud. >>gretchen: the attorney general there looked into more than 300 cases of alleged fraud. they decided they had a problem with 157 of them. do you know how much taxpayer money they ended up saving as a result of that? almost $22 million. you've got to wonder if every state did this and had somebody look into the

alleged fraud that's going on in our social security disability system that there would be a lot of money to come up with that might be helpful when we're discussing the budget. >>steve: this poor woman, as you can see, she's limping to a place. >>brian: later she worked on jeff gordon's pit crew. >>steve: she apparently in the estimation of the government out in utah was fine. she changed that tire. a word to you people out there committing some sort of fraud, if you are committing fraud, breaking the law, whatever you do, don't post it on youtube because that's what the robotic guy did. >>gretchen: the guy who did this investigation said, when asked why are they doing it, his quote was they feel entitled to it. when we asked them why do you feel entitled to $2,700 a month for a fraudulent, fake disability, they said other people do it. why not me? >>brian: that's good for eight-year olds and grownups. straight ahead, an angle to the north korea story you have not heard yet.

up next a journalist who has been inside the secretive nation. he knows exactly why the country behaves the way it does. >>steve: this kayaker never saw it coming. yeah, that was a shark. what happens next? even better. get great deals on g at bass pro shops.

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>> north korea moving missiles closer to its east coast to prepare for what some are calling an imminent launch. >>brian: with us now is a man who's been to north korea and wrote extensively about it. blaine harden, former "washington post" foreign correspondent. you believe this aggressive movement with missiles and war mongering is an attempt to control the north korean population more than anything else. why? >> well, it's pretty tough for north korea to go to war against the united states or south korea. the last time they went to war was a long time ago, but they had the support of the soviet union and the support of china. they don't have anybody supporting them. there's no out-of-town muscle behind their threats. consequently, it just doesn't make much sense that they're going to go to war. in fact, on the ground, they're not moving their troops around in a way that

would coincide with the bellicosity. >>gretchen: you're looking at the troop movement. a lot of people are only looking at missile movement. with the word this morning that these two missiles have been moved to the east coast, many people are thinking the threat appears, it could be real at this point. >> the missiles have been fired before. they fired missiles over japan in the past, and they fired a number of missiles in other directions. the united states and the rest of the world has chided them for doing that, but if the pattern of the past hold, they're not going to be firing their missiles into tokyo or into seoul. >>brian: your book, a lot revolves around the guy who escaped, shin dond, hook, he lived inside north korea and was able to get out and tell you about the reality. how many people are suffering?

how horrific do you think it is to be a north korean these days and not be a member of the kim family or military brass? >> one of the things that happens with the threats about missiles and the nuclear test is people don't pay attention to the human rights catastrophe in the country, and it's been going on for a half century. the worst part of it is the political labor camps. there are six of them. they are in the mountainous part of the country. the u.s. government and south korean government estimates there are between 150,000 and 200,000 people in these camps. half of the people in the camps by estimate are just the relatives of the perceived political enemies of the state. these camps are really important part of how north korea survives as the longest living totalitarian state in world history. what they do is isolate and eliminate those few people who have the courage to

speak out against the government and they scare everybody else in the country into silence. >>gretchen: it's an amazing book. check it out. it came out in paper back now. "escape from camp 14: one man's odyssey from north korea." blaine harden, thanks for sharing your thoughts with us. >>brian: he was there at the philharmonic and met this man and found out more. next, high schoolers getting to opt out and have their education their own way, like burger king. should we be legislate seniors -- excuse me -- should we be letting seniors -- excuse me -- teenagers dictate their own teenagers dictate their own curriculum? she's still the one for you -

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>>gretchen: quick headlines. bernie madoff's son blaming his father's despicable crimes for his rediagnosis of cancer. he says the shame of his father's $65 billion ponzi scheme contributed to the development of his stage 4 lymphoma which was in remission for ten years before returning when his father went to prison. >> toyota, honda, nissan and mazza recalling nearly 3.4 million cars this morning. the companies say front seat air bags on the drivers side of the vehicles may not inflate in a crash. so far no injuries reported. >>steve: it has always been an american tradition for decades students in schools recite the pledge of allegiance at the start

of each school day. remember that when you were going to school? in recent years more of our public institutions are moving away from reciting the pledge for fear that it might offend or anger children and/or their parents. in the state of oregon, schools only make time for students, they give them the opportunity to say the pledge once a week and one lawmakers says that's not enough. oregon's state republican representative escoval say if schools receive national dollars they should be reciting the owing on a daily basis. he joins us this morning. i understand you heard from a kid, a senior out in salem schools by the name of chandler court, and he told you what? >> actually he's from rogue river, southern oregon, and chandler, when he was a sophomore in high school, had a principal that wouldn't allow them to recite the pledge at all in the school itself, and he said you have the opportunity to do the millenial when you walk through the -- you have the

opportunity to do the pledge when you walk through the gate. chandler went ahead, got people together. he had a petition, he got the towns folk involved and got the administration involved. and today they do the pledge of allegiance at least once a week. >>steve: once a week. what you would like to do with your house bill 3014 would be to have kids have the opportunity to say it once a day, plus flags for classroom, which i thought all classrooms had flags any way. >> most of them do, but there are some schools -- most schools do pledge. but there are some schools that do not do pledges. there are some schools that have no flags whatsoever. the flags are actually free with organizations around, the v.f.w., d.a.r., so on, so forth. it's not a cost. we have one particular school down in southern oregon that refuses to fly an american flag on their

flagpole. >>steve: a public school that refuses to fly an american flag? >> that is correct. it's a public charter school located in southern oregon. i've spoken with the principal or the administrator of that school, and he still to this day has not flown that american flag that they possess. they have no possession, will not fly that flag. >>steve: i bet they don't say the pledge either, do they? >> my grandsons go to school there. one of my grandsons -- 13 -- he went to a brick and mortar school in central point which is next to medford, and he knows how to do the pledge because they did it daily. they pledged themselves daily, whereas when he goes to this school -- i also have another grandson that's ten, that's thee years younger -- that's three years younger and he only went to this public charter school. he does not know how to do the pledge. >>steve: that is sad. what you would like to do is make sure every school in oregon has the opportunity to say the pledge once a day.

how can anybody vote against that? >> i can't answer that. that is up to the individuals. it's coming out, and i want to thank the speaker of the house, tina cotek and the chair of the committee because they are bringing that thing out to the house floor so we can vote on it. >>steve: we'll be keeping an eye on it. it's extraordinary that some schools don't even have american flags that they fly; public schools. thanks for bringing that to our attention. >> the thing that bothers me the most is why do i have to do a bill to do this? >>steve: weed like to have our viewers -- we would like to have our viewers e-mail us what they think of the bill, friendsatfoxnews.com. what do you think about that? please do e-mail us. or twitter us. he never saw this coming. take a look at this. stick around. what happens next is even

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>> jays zee and bei don't beyone created controversy by kraflg to -- by traveling to cuba. the treasury department says when they apraoufd the request, we didn't know it was them. we thought it was a different jay-z and beyonce. >>gretchen: apparently their travel agent or somebody put in their paper work. and according to reports, you do not have to name who is going there, which is a little odd, isn't it? if you're going to a communist nation and need to get special permission maybe you do need to see the names. >>brian: why not sandals? they don't have a brutal dictator. >>steve: it's all inclusive. that's the good part. >>brian: sandals has a fine history. do they have an army? >>gretchen: which island are you talking about for sandals? >>brian: somewhere around cuba, somewhere in the caribbean. >>steve: the

extraordinary thing about the beyonce-jay-z trip is they convinced the treasury department that this fifth anniversary trip to cuba was for educational purposes. which part of that is educational? >>gretchen: if you don't have to submit the names of the people why would you have to submit more information about educational? if you don't have to submit the names of the american citizens going there, that is a little odd. >>steve: now we have headlines. >>gretchen: a grim warning from the house intelligence committee about the next major cyber attack because it's already here. >> by the way, the chinese are probably on your computer. the russians are probably on your personal computer. the iranians are already there. and so they're trying to steal things that they think are valuable or use your computer to help them steal from someone else. that's a real problem. >>gretchen: what would those countries want from you? experts say they're trying to use your computer to hack companies. a congressman used a bill

to conquer that. >>steve: a video with a robber holding a gun to a 62-year-old's throat. the store owner tries to hit him with a bat and the second robber starts shooting. the problem? the shooter hits his accomplice. the accomplice limps away. the fight goes one on one. the owner gets a bullet in the leg. another person in the store gets involved, hits the bad guy with a stool. then with a fire extinguisher. the two robbers somehow got away. this morning they are still on the loose. but what an image. look at that. >>brian: a bat beats a gun. high schoolers allowed to have their education. state senators approve giving students two different kinds of dip phroepl mass. the standard, students don't have to take algebra

2. next the scholars diploma, students will have to take all math and science. next the merit diploma. provides on the job training. some parents giving the plan a failing grade. >> the work is not getting easier. they need to learn so they can operate out there. >>brian: the billheads to the house for a vote. >>steve: like ordering off a menu. >>brian: great. >>gretchen: check out this video. it is a kayaker and he never saw any of it coming.

>>gretchen: he is fishing in hawaii when the shark jumped out of the water, took his fish. the 37-year-old's reaction? priceless. >>steve: why is it everybody seems to be taping themselves whatever they do these days. >>gretchen: it seems like he's alone in the world. >>brian: while we sit here in front of five cameras, steve, how dare you be so judgmental. the boston red sox do something they have not done in almost ten years, and that's not selling out at home. ben affleck, they need you there. dennis leary, wake up. the red sox are abandoned. last night's game against the orioles the first time since may 2003 the sox didn't pack the house. by the way, they're off to a very good start. now wrestling, sean my kals will be behind the wheel in a nascar race this week

driving the pace car for the n.r.a. 500, the first celebrity to drive the pace car at the race. we showed you yesterday, bubba watson crying when talking about taking the masters green jacket. >> i said is this my green jacket, and he said -- i'll probably cry again -- he said it is your green jacket that you're taking home. i told him i was going to go home and wrap calob in it. >> that is his son. watson and his wife adopted him a week before last year's masters. yesterday he stole the show. the masters team off today as watson tries to defend his title. also saw wade gretsky's -- let's not get distracted. kilmeade and friends coming up today at 9 till noon. great guests, mike emanuel, how do you say it?

steve doocy. dr. keith ablow, more of a personal visit. >>gretchen: president obama claims his budget is a balanced approach to cut spending, but with across-the-board tax hikes and fees exceeding $1 trillion, many on the other side are disagreeing. here to weigh in is stuart varney. you don't get distracted do you? >> certainly not during a promo of brian's radio show. this budget is fantasy. i hate to be too harsh, but lets get real here, shall we? this budget does not -- repeat -- does not cut the debt; okay? it does not cut spending. it does not. it taxes the rich some more and pretends that the rich by being taxed more can pay for all of these -- >>brian: he already cut

$1.2 trillion out of the budget. he said that in his speech yesterday in the rose garden. >> what he's done is to propose a cut in the rate of increase in spending. a cut in the rate of increase in the debt. right now total debt $16.8 trillion. at the end of the obama second term $20 trillion. that's not a cut. it's a gain. >>steve: that's not why they -- that is why, one of the reasons they probably leaked before the sunday shows, hey, the president is going to take on entitlements. when you look at what he's talking about doing, he's saying hey, republicans, i'm giving you what you wanted, the chained c.p.i. thing, so you've got to give me a boatload of tax money, even though when you look at the chained c.p.i. thing, if you've got a $2,000 check, it would knock five bucks off. it is just a drop in the bucket. barely doing anything. >> you say you're tackling entitlements, tackling social security, nonsense. you're introducing chained c.p.i. which will reduce

future cost of living adjustments by a quarter of a cent on the dollar. that is it. meanwhile you're going to raise trillion by taxing the rich. this doesn't work. more debt, more spending, more taxes. >>brian: would you like to see all three budgets get together in a conference? >> there has to be a compromise. but it doesn't solve america's basic financial problem. we are headed towards more debt. we're headed towards declining, quite frankly, as a financial society. and i think we're headed towards despair. >>gretchen: what are people in his party upset about? >> they don't want to touch social security at all. even minuscule adjustment to future cost of living allowances. a minuscule adjustment, but the left is wildly upset about that. >>steve: you also remember what the president wants to do is he wants to

restore that big sequester cut. republicans say we don't really like that but it is the first legally binding cut in decades, so we'll go with it. but the president wants to put that back and say we'll have cuts later which would not be binding. >> i would urge our viewers to ignore the political maneuvering, ignore the spin and look at where we're going. this president is going to redistribute income. period. redistribute wealth. period. running us into more debt, more spending, more taxes. you make money, relatively wealthy, more taken out in tax. >>brian: varney and company 9:20. >>gretchen: coming up on "fox & friends," a major announcement from ivanka trump. the big change is about her personal life. >>steve: if you had to choose between our military

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reporter trying to protect her source will not be tossed in jail, not until august at least. a judge postponed making a decision in jana winter's case until then. she revealed movie massacre james holmes sent his psychiatrist a notebook full of disturbing details and the judge is angry about that. donald trump set to be a grandfather again. ivanka trump reportedly pregnant with her second child. she and her husband have already got a daughter who turns two this july. baby number two expected to arrive in the fall. brian? >>brian: that means in five years that baby will be a judge in celebrity apprentice. if you had to choose between our military and justin timberlake, which would you pick? the president went toe the air s forced to back out of fleet week in california because of the sequester. a former captain with the u.s. marine corps is not happy at all. paul, what is your reaction to this?

>> i think it's outrageous. the troops and the sailors that we are out there to support count on fleet week to get out there and be in the community, enjoy themselves, get a bit of time. the community itself suffers because they are not able to enjoy their participation. they are not going to do it for the first time in 22 years. >>brian: you haven't seen land in a while. you come back to the u.s. and find out this is taken away. what does it do to you to find out other people aren't sacrificing. maybe you can go to 1600 pennsylvania avenue. >> you spend sometimes four or five, six months on ships. you look forward to the port visit. fleet week is not an average port visit. tp-s a speck tack -- it is a spectacular event, a lot of people coming on board ship and saying hello to the sailors and showing support for our men and women in uniform. it is something to look forward to. when you see the president

of the united states having a private event for hollywood bigwigs and celebrities in the privacy of the white house, it is a little disappointing. it is very disheartening. >>brian: do you think your military leadership is letting you down by not standing up and expressing the outrage and how the military is taking an inordinate amount of hits through sequester? >> i'm a little disappointed at some of our leadership. they are put in a difficult situation. i understand the navy has to make tough choice and the president is putting them in a difficult situation. i would like to see some of our leadership complaining more about how the military is being disproportionately affected and how the morale and welfare of our troops is being affected unfairly i think. >>brian: thanks for your service. hopefully they'll restructure this thing and give the military flexibility when it comes to these cuts. straight ahead, mayor bloomberg's big crackdown on soda, it's falling flat. how people are getting around his ban.

the i.r.s. is collecting a whole lot more than you than taxes. the agency says it can snoop on your e-mail legally. really? the judge is here.

>>gretchen: the countdown to the tax filing deadline and now there is a new warning that the i.r.s. may be collecting more than just your money. could it be collecting data as well from your computer to make sure you didn't cheat? the agency admits it might check social media websites and private e-mail. is that legal? let's ask fox news senior

judicial analyst judge andrew napolitano who is going to have a field day with this one, i think. >> there is no end to the shortcuts the government will take to try to make its own job easier and basically say keep the constitution in the drawer. can they look at social websites? of course. so if you take a trip to the caribbean and you deduct the cost because you say it's a business trip, but you also show pictures of that trip to your facebook friends of you being decidedly unbusinesslike and it looks more like a vacation, because those pictures were published to a large group of people, may even be on a public website depending on where you posted it, of course the i.r.s. can look at that. they can look at anything that is public, that you knowingly make public and compare it with what you tell them in private. the more problematic one which we learned about last night from a freedom of information request that was responded to by the i.r.s. and revealed by the people who made the request, is that the i.r.s. has been claiming for a couple of years now that it

can read private e-mails, and the i.r.s.'s argument is if you, gretchen carlson, send me, andrew napolitano, an e-mail, you don't have expectation of privacy because you sent it to me. that is utterly laughable and has been rejected by the court. you intend it just for me. therefore, the privacy is for everybody else. >>gretchen: how would they get into those e-mails? >> they are doing this without a warrant. if they had reason to believe either of us was committing a crime, they would present that to a judge. the judge would give a search warrant. they would present the warrant to the company that operates the server you use and that company would presumably comply and let them tap in. they want to tap in without a search warrant. they have to go to the company, whoever the company may be, verizon, google, microsoft, and say we want to read what carlson has been saying to napolitano. do us a favor and let us in. that's what's been going

on. >>gretchen: these companies would say yes? >> google has a history of saying no and of challenging the government when the government comes knocking. most of the other servers go along with requests from the government. >>gretchen: why? because they feel maybe they won't be targeted? >> i don't know what goes through their minds. that is a reasonable explanation mrs. carlson. >> all right, mr. napolitano. man in red type. i'm going to send you an e-mail about that later. >> the i.r.s. not going to get their hands on it. >>gretchen: have a good day. how was that dinner with the president last night? we're asking one of the republicans who was there. senator johnny isaacson, next hour. want to take a caribbean cruise for less than a night at the motel 6? though tickets on sale -- those tickets on sale now but at your own risk.

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>> gretchen: good morning, everybody. today is thursday, april 11, 2013. i'm gretchen carlson. thanks for sharing your time. firefighters are free after being held hostage by man who tricked them with a fake 911 call. brand-new information on how they're doing this morning and what we now know about the suspect. >> brian: tornadoes on the move this morning in neighborhoods across the midwest. a mess. and the severe weather, a threat, is not over. we are tracking the storms this hour. >> steve: we are. and he says his muscles are so sore, there is no way he could work. but he can do this. what an amazing recovery! doesn't look like this rocker should be on disability, but he is. the major scam just uncovered. "fox & friends" hour two for thursday starts now.

♪ >> steve: congratulations, today is national sub day and blimpie, which is 49 years old today, as you can see, has assembled a gigantic sub. you know how the sub came up with the sandwich name? during world war ii, a deli in connecticut got an order for 500 hero sandwiches from a local navy sub base. and after that, the deli employees started referring to the hero sandwiches as the subs. >> gretchen: interesting history there. just as my stomach was starting to grumble. >> brian: are we setting any type of world record out there? >> steve: no. >> gretchen: they're going to have a contest to see who can

eat more. >> steve: we've got 49 feet of it. was that hardy? >> brian: yes. i think hardy is at another station and that's the noise he does make there. >> steve: by the way, we're going to go outside and start chewing on the sub at 7:30 eastern time. so if you are hungry, stop on by after 7:30 we want one more shot and then be our guest. put our giant sub to the test. >> gretchen: let's do some headlines. he wanted his cable turned back on, so he held four firefighters hostage, then paid for his actions with his life. the man called 911 faking a heart attack. five firefighters responded to his home in georgia. when they arrived, he took them hostage. he let one go only to move the truck. the swat team outside made a split second decision when it looked like the firefighters were about to be killed. >> gretchen: they stormed the home, exchanging fire with the

suspect, killing him. the firefighters suffered minor injuries. the gunman a was having financial problems and his power cable and phone had been turned off. in two hours, the american parents accused of kidnapping their other than children and sail to go cuba will make their first court appearance in fellow platform they face charges of kidnapping, child neglect and interfering with child custody. last year they lost custody after police found them in a hotel room surrounded by weapons and drugs. the boys now back with their grandparents who currently have legal custody of them. the u.s. sending this warning about north korea, you're coming very close to crossing a dangerous line. north korea positioned two missile launchers on its east coast. the missiles which have a range of 2500 miles, could be launched at any time. >> what's significant about this test is they're apparently going to do it from a mobile launch platform, which is something they can launch much more quickly than if they have to put

it on a launch pad. >> gretchen: the u.s. wants to tone down the tensions, but kim jong-un's regime is making that difficult. bad news for michael bloomberg. soda ban, a study says people drink more soda when forced to buy bigger sizes. consumers are more likely to drink more when they have to buy it in small cups. >> brian: one thing he created is create awareness that soda is full of sugar, which makes you fat, clogs up your arteries. >> steve: unless you drink the diet, which is not that bad for you. >> brian: right. >> gretchen: the ban didn't involve the diet, i don't think. originally. i think it was just for the sugary stuff. but it's not going to happen. >> brian: doesn't matter. tab is the only soda i drink. >> steve: take a look at extreme weather alert. overnight, a wild storm system hitting the midwest. look what used to be a church in

arkansas. this morning the storm is still on the move. maria joins us right now. it's not only a twister storm, but also a snow storm behind it. >> that's right. we have multiple aspects with the storm system. very warm temperatures, cold temperatures behind it, snow, ice, and severe weather, like you just saw. i want to start out showing you one of the reasons why we have the severe weather threat for today. we've had it over the last couple of days across parts of the south and also across portions of the midwest. that's really because we have very warm air ahead of this storm. temperatures in the 70s and 80s, across parts of the southeast. behind it, temperatures have dropped by more than 40 degrees for some of you. you've been seeing a significant temperature drop within just 24 hours, places like texas. that's what we're looking at, a powerful cold front headed eastbound and that's one of the reasons why we saw severe weather from texas all the way up into parts of new jersey yesterday. over 250 reports of large hail, damaging wind gusts and tornadoes reported yesterday. two particularly hard hit areasn

arkansas and st. louis county. both areas saw damage to structures, homes and trees brought down. we have showers and storms across parts of houston, all the way up into parts of michigan and across the great lakes. very widespread storm system. on the back end of it, heavy snow, eight to 12 inches of it. icing is another concern. we have some video we'll show with you an ice storm warning in effect across southeastern parts of minnesota, a glaze of ice out here of up to a third of an inch is possible. that's very dangerous stuff. that could produce some power outages, bring power lines down, and those tree branches can come down as well. otherwise a severe weather risk today from ohio all the way down into parts of the florida panhandle. stay safe, everyone. >> steve: thank you very much. a look at the weather. >> brian: last night there was a big dinner at the white house. the senator got a call said get 12 people together and we'll invite them over and let's talk about the budget.

maybe weave in immigration. if we have time, let's talk about guns. in the end, we'll find out in ten minutes, the inside story of what took place. it started at 6:41, ended at 9:17. at least they're saying it was a substantive exchange with the president. >> gretchen: why was janer and mitch mcconnell not there? because it appears now that the president is going around them. john boehner said he wasn't interested in talking about the president's budget. that could be one of the reasons why. he did find these 12, including marco rubio, who was up until the last minute or so was maybe going to have a conflict, but was able to go to the dinner. will they make any headway? this is the second part of the charm offensive. will it make a difference? >> steve: and people are saying, will there be a grand bargain? do you know what a grand bargain is? it's they figure a way to fix social security and medicare going forward so -- >> brian: and tax restructuring. >> steve: tax restructuring out there as well. but figure out how to do it all and yet do something about the deficit, bring it down. when you look at the president's

budget that he submitted yesterday, really doesn't do anything about deficit reduction in the long-term. take a look. here are the two plans. one work the paul ryan plan. it's in red. then you got the president of the united states' plan in blue. as you can see, the spending over the next ten years or so, as you can see, the president of the united states, spends a lot more than paul ryan. here is the congressman with greta van susteren last night. >> we have a trillion dollars deficit. we've got a debt crisis on the horizon. and it's spending driven. so what does the president propose? $1 trillion spending increase. only to be eclipsed by a $1.1 trillion tax increase. i don't think he learned the lesson of economics or of history and he continues to repeat the same mistakes that have been made and if we have any value, republicans, house of representatives, divided government, it is that we're not going to help him repeat these mistakes. >> brian: right now we understand that paul ryan does

not want a conference with the senate because i guess for reasons one which seems to be they're so far apart, he doesn't see it going anywhere. the president enters his plan into budget, it should have been first but it was third. i wonder where we go. after dinner is done, we'll talk to senator isakson, in four minutes. we'll find out maybe insight of progress made. for 4 1/2 years, he didn't do this at all. now he's done it five times in the last month. i think it's only going to help. >> steve: according to the "wall street journal" -- >> gretchen: they should hand out a principaller of the debt solution. that should be a starting point. it would be why if they did that. but they're apparently not looking -- if you could start with that, you would at least have a lot to go on. >> steve: we understand, according to the "wall street journal," they have an account of what happened last night and it's not like it was great big

kumbaya. they persist because the president insisted and did last night, look, i got to have more tax revenue from you republicans. the republicans are going, mr. president, we gave you that in january, so sorry, that's off the table. >> gretchen: let's talk about something going on in utah. the office of the attorney general was able to get its hands on videotape about social security disability fraud caught on tape. how much did it save taxpayers in that particular state? 157 fraudulent claims to the tune of $22 million, like this guy right here who apparently could not go to work, but had time to make this video in a tin foil outfit and later on do a little air guitar. >> brian: i think reynolds wrap called, they have a sponsor in mind. >> steve: it's too bad they have obscured his identity because if danny tario was doing another dance fever, that guy, in addition to the tin foil robot, this is the same guy rocking out with the air guitar. very talented scam who are is

breaking the law. >> brian: doesn't he have a television? he looks like so lonely. he seems to be his own entertainment. >> gretchen: we have video of a woman also caught and apparently her claims were -- >> steve: she looks terrible there. >> gretchen: they were ended after it was shown she was able to actually fix a tire of a car. but here is the sad thing. the investigator said that the majority of the people, when they were busted, say, why did you do it? they said because we felt entitled to it. we felt a lot of other people are doing it. 2700 bucks a month, other people are doing it, so we decided to get in on the game. it's kind of a sad commentary on where we are potentially. >> steve: especially economically. a lot of people are out of work. they're desperate when they run out of unemployment, next thing you know, they think -- >> brian: segueway to disability. straight ahead, he invited them, but did they get anything done? one of the republicans was asked to put up the guest list and invite other republican senators joins us to tell us the inside

story about what happened at the white house last night. >> steve: that's great. then these barbies were supposed to teach kids about culture. this time critics say mattel took things way too far. what was inside the box that got critics so fired up? we'll tell you. >> brian: we'll hear from ken next i'm here at my house on thanksgiving day, and i have a massive heart attack right in my driveway. the doctor put me on a bayer aspirin regimen. [ male announcer ] be sure to talk to your doctor before you begin an aspirin regimen. go talk to your doctor. you're not indestructible anymore. tens of thousands of dollars in hidden fees on their 401(k)s?! go to e-trade and roll over your old 401(k)s to a new e-trade retirement account. none of them charge annual fees and all of them offer low cost investments. e-trade. less for us. more for you.

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>> brian: president obama on his so-called charm offensive, it continues now. he invited republican senators to dinner last night. the topic of conversations, cut backs and entitlement reform. did they get anything accomplished when dinner began at 6:41 and ended at 9:17? georgia senator was asked to round up some senate colleagues and go to dinner. he did that. here to tell us what happened. senator, what happened? >> it was a great meal. it went about an hour longer than we expected. it was a good dialogue between the president and members of the senate. quite frankly, we did more talking than the president did. he was a good listener. i think we covered a lot of good ground. >> brian: what progress do you think you made? >> you're always making progress when two sides of an issue are sitting down at the same table talking. we don't ever make much progress when we're lobbying across the political boundaries. it's a good start to what will be a very long process in terms of dealing with our debt, our

debt sieve and fiscal policies. >> brian: it is budget. the president was saying in the rose garden that he showed some give in that he's looking at social security and he has cuts to medicare. was that a starting point for you, to show this charm offensive is working? >> i'm glad that you mentioned that because that was a step forward by the president. i want to make a point here. we're talking about saving social security and saving medicare. we're not talking about cutting it. we are talking about reforming the way in which they're calculated. but if we do nothing, by 2037, payments will did gown automatically because of depletion of the trust fund. we're trying to save the benefit for our children and grandchildren by reforming the process by which it's determined. >> brian: i'm sure the president wants to save social security as well. when you got into it, you said he was listening the whole time. do you feel like you got through to him that what your objectives are and where the -- what compromise may lie? >> i think what the result of

the meeting was that both sides, when we walked out of the room realized, we had just had an almost three-hour conversation between the senate and the president of the united states about the most substantial issues that we face in debate on the floor and got a better understanding from where everybody is coming from and a better understanding of where we need to get to. >> brian: when you made up the roster, why was it important that marco rubio be on it? >> well, i love all my senate colleagues. i picked the 11 other people other than myself that i thought represented the south, the north, the midwest and the west, both in the political spectrum, new england, moderates, right of center. i tried to get a good coalition that represented what the senate republicans stood for. >> brian: marco rubio was able to come. in terms of an engagement, was there anyone who engaged more with the president when it came to economic issue, guns or immigration? >> no, in fact, immigration came up a little, same thing in terms of guns. most of the discussion was about fiscal policy, about the tax

policy, about revenues, about entitlements. that was the gist of the meeting and the heart of the meeting. >> brian: where do you go from here? >> hopefully having another meeting. there is still 25 members or so of our conference that haven't been in a meeting like this. i hope he'll continue to have the meetings. i hope we'll continue to go with the idea of finding common ground. we have our differences and some are inseparable, but we have a lot of places we can find common ground because in the end, all of us want to save the republic for our children and grandchildren and we're on a precipice that if we go off that precipice, we maybe won't do that. >> brian: i speak for a lot of people, i'm glad you guys are talking and people don't come out with scratches all over them in need of bactine. you still seem to be talk, so maybe we are making progress. senator from georgia, thanks so much. >> thank you, brian. >> brian: straight ahead, stocks are soaring, but the economy is not. what's going on here? charles gasparino knows and he's on deck.

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>> steve: news by the numbers. i got them here. more than $500 million. that's how much george w. bush raised for his presidential library, exceeding the goal. the dedication at smu in dallas is later this month. next, $153 million. that's how much the greek island where jackie kennedy married aristotle onassis has been sold for. the original asking price was

$15,000. the new owner, a russian billionaire, of course. finally, 38 bucks. that's how much you can pay for a night on a cruise on carnival's ship, the inspiration. the discount, cheaper than a room at aaybe it's because of what some call the carnival curse. 38 bucks, not bad. gretch, over to you. >> gretchen: thanks very much. fox business alert. dow and s & p opening today after a huge rally yesterday, closing at an all-time high. charles gas practice perino -- gasparino is here to break it down. a lot of people were celebrating what was going on yesterday. why? >> even today, looks like the futures are up today. one of the great economic success stories of the obama presidency, and you can't find many, is the stock market. it has nothing to do with his policies. it's all about the fed. when the fed lowers interest rates, it makes returns on bonds lower. people buy stocks.

it's a pretty simple equation. that's what's going on. >> gretchen: yesterday, wasn't there -- or two days ago, wasn't the fed going to print money and not change the rates? >> right. listen, the fed is like the old china watchers, they figure out what the chinese government was doing. here is the thing, they're going to change it at some point. that's when the average investor has to worry about. when the fed changes direction, when they give any hint, you really do have to get out of stocks because then the dow will go down. this is purely correlated to interest rates and when those interest rates change, sell your stocks, buy something else, cash, bonds, whatever. >> gretchen: so does the rising stock market, is that significant when we look at the overall economy or are they not related? >> well, it's significant for your pocketbook. there is no doubt if you're in the stock market, if you've been in it since it hit its low in march of 2009, it was 6,000 on the dow to now, you made a lot of money. there is a wealth effect.

here is one of the problems. people don't trust the markets as much. average investors. so average investors aren't in this as much as they were in the 1990s. but if you're in a pension plan or 401(k), it went up. no doubt. you can not discount that. >> gretchen: especially when you have high level people saying the stock market is going to take a huge dive. >> i would say this, the stock market, my belief is the dow is going to 15,000. it may go higher and why is that? because interest rates are low. you have to look at interest rates. it will not change unless the fed changes direction because there is no reason to put your machine in a bond. that's what all this is about. if your returns are lower on bonds, on commodities, you buy stocks. pretty simple. >> gretchen: i think a lot of people are thinking, unemployment is still high. maybe they're looking for a job right now. and they're wondering, how can the stock market do so well in these particular times? >> it's not totally correlated to the economy anymore. it used to be like the economy

went up, business profits go up. we should point out that business profits are still pretty good. how do companies get profits? they lay people off. so corporate america is fairly strong. on top of that, like i said, when the fed is printing money, when interest rates go down, this is what happens. essentially buys bonds. bond prices go up. interest rates go down. investors generally, sophisticated investors buy stocks instead of bonds. that will continue, particularly, and here is the perverse thing, if the economy stays weak. if unemployment stays weak. >> gretchen: interesting. thanks. have a great week. as a kid we said the pledge of allegiance every day. remember? why are some students not even saying it at all? should it be mandatory? your e-mails coming up next. then sorry, madonna. you are causing a commotion. the president of malawi says she's nothing but a diva and taken their bitter war of words public now [ male announcer ] it's simple physics...

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possible missile launch that could come at any time. that's what they warned. the north petitioning now two missile launchers. david piper is live in south korea with the very latest. where in south korea? the north korean have said take cover 'cause we might do something. >> 30 miles away from the border here at this time is where i am. of course, north korean artillery could easily hit the south korean capitol. the u.s. and south korean forces remain on high alert at this time for that expected missile test by the north. and they do seem to be quite sensitive about the missile movements. they've been moving around the missiles over the last 24 hours. intelligence sources say they've been moving the intermediary missile in and out of the facility in eastern ports and the sources say the north could fire them still at any time. some reports suggest north korea could test a missile or missiles on the 15th of april now.

the birthday of the country's founder, the grandfather of kim jong-un. south korean forces have beefed up their military patrols around key installations here. large parts of the country are protected by the patriot missile system here. japan has also put in place patriot missiles to protect tokyo and warships of the u.s. and its allies are at sea to monitor and shoot missiles down. missile defense system is being sent to the u.s. island of guam as north korea has threatened to attack it. meanwhile, foreign ministers of the g8 countries are meeting. top of the gained is the korean crisis. china, which has the most influence on north korea, isn't represented at the g8 meeting. secretary of state john kerry is there, of course, and he will be flying to seoul tomorrow and

also late in the week, heading to beijing to talk to china's leaders about this crisis. back to you guys in the studio. >> gretchen: thanks very much. david piper. seeing it firsthand in south korea. >> steve: let's go out to the state of oregon. when we all went to school, you would start the school day with the pledge of allegiance, right? well, did you realize in the state of oregon, they've got a law where kids are simply given the opportunity to say the pledge once a week. a law maker out there wants to change that. he wants them to be able to do the pledge once a day and extraordinarily, there is some classrooms with no flags. he wants flags there as well. he's sad it's come to this stage. >> i think the thing that bothers me the most is why do i have to do a bill to do this. most schools do a pledge, but there are some schools that do not do pledges. there are some schools that have no flags whatsoever. the flags are free with

organizations around, the vfw, dar, so on. so it's not a cost. and we have one particular school down in southern oregon that refuses to fly an american flag on their flag pole. >> gretchen: do you remember when we were growing up they used to do it over the loud speaker. the principal, i think, or actually i think sometimes students, it was a big honor if you got to go down and lead the pledge. i have to say i was pleasantly surprised when i went to an event at my son's school recently and not only do we say the pledge of allegiance, we also sang "my country 'tis of thee" and a lot of the adults were going, oh, yeah, what were the words for this? but it was refreshing that they did both to open the assembly. >> brian: it's a grand ole flag, it's a high flying flag. >> gretchen: do you want to sing it now? >> brian: if you don't mind. my country 'tis -- >> gretchen: do you remember that one? did you sing that, too. >> brian: i think we did it every once in a while.

>> steve: value also said it was too bad 'cause he realized that at his grandson's school where they don't fly the flag, they didn't even know the pledge. we asked you what you thought about it. marian said, shame, shame on the oregon school refusing to say the pledge of allegiance to our beautiful flag. it's only common sense to do so. our military men and women give their lives in the pursuit of freedom of this country. >> brian: della says i agree all schools should have an american flag. i disagree with making students stand up and say the pledge every day. how much better does that make us than a place like north korea where i'm sure they are forced to say their pledge? >> gretchen: they're pledging to different things there. >> brian: they are just hoping they're alive. most are in prison. >> gretchen: here is another one, as a veteran i swell with pride when i see old glory flying to know some day my kids won't be saying the pledge of allegiance or have the flag in school sickens me. i think to some degree it gives kids a sense of self to be

patriotic and know something about their country. i think every kid is inquisitive about it. if they're exposed to it, they want to do it. it's when they're not exposed to it that it becomes a problem. >> brian: 24 minutes before the top of the hour. here is what else is happening of the being allowed to pray with his friends three times a day from behind bars, not enough for this guy. american taliban fighter johnny walker, i know you were hoping he was not going to be in the news anymore. he wants to be able to pray five times a day as required by his faith. his lawyers are getting support from the aclu on this. they say not letting him pray that often violates his freedom of religion. lynn convicted of fighting for the taliban, serving 20 year sentence in indiana. we should talk to his wife. get her to weigh in on this. >> gretchen: securities and exchange commission failed for decades to catch on to bernie madoff's ponzi scheme. but an appeals court ruled those who lost billions cannot sue the sec. the court upheld a decision

siding with the sec. the three-judge panel ruled the sec is shielded by the discretionary fund exception. that protects the government from certain lawsuit even when a private employer would be liable under the same circumstances. >> steve: mattel in hot water over its new barbie. decked out in a colorful dress, mexico barbie comes with a chihuahua and passport. critics claim it's offensive and stereo typical. the company said, quote, mexico barbie is one of 100 barbie dolls of the world. all wear a country inspired outfit and have a passport and an animal. so there. >> gretchen: madonna causing a commotion with the government of malawi. she was visiting an orphanage last week when the government says she acted like they, quote, should have abandoned everything and rolled out a red carpet and blasted the 21 gun salute in her honor. she calls the statement lies and says she will continue to try to help kids in that country.

>> brian: she was held up and delayed in the airport and claiming to build these hospitals but basically hasn't. >> gretchen: they've been feuding for a while, since she adopted her other child several years ago. all right. something happened at the boston red sox last night that hasn't happened in a long time. >> brian: i don't know what you're talking about. the red sox did something they've not done in ten years, not sell out. by the way, they're playing good against the orioles who might be the favorite to take the east. for the first time they didn't sell out since 2003. the sox packed the house for 7934 straight games. 820 if you include the playoffs. we showed think yesterday. bubba watson crying when winning the masters last year. >> and he said -- >> brian: who won that game? >> he said yeah, this is your green jacket that you're taking home. i told him that i was going to go home and wrap caleb up in it. >> brian: caleb that he's talking about is his

13-month-old son. watson and his wife had just adopted him before last year's masters. yesterday he stole the show at the par 3 contest. the masters tees off today as watson tries to defend his title, the overwhelming favorite? tiger woods. >> gretchen: i love his little shoes. you remember putting those cute shoes on your kids before they could walk? >> brian: i said listen, if you can't tie them, you can't wear them. i had to put my foot down. steve what, are you doing? >> steve: i'm out front because did you realize today is national sub day here on "fox & friends"? maria and i are out here and right in front of us, it looks longer than 49 feet, doesn't it? >> i'm going to eat 48 feet. you can have one. >> steve: thank you for sharing. joining us right now to commemorate this special day from blimpie's, we have the workers. why are we celebrating national sub day today? >> well, what we want to do do is come out here on the 49th

anniversary of blimpie and since it's national submarine day, we wanted to commemorate that. blimpy got its start not too far from here in hoboken, new jersey. >> steve: they're called subs. >> exactly. we got the name blimpie, they were trying to find a name that's appropriate. if you look at these things, they're more like a blimp. >> steve: they're blimpish indeed. >> exactly. >> and delicious looking. >> steve: you have a subway shop where? >> i have a shop on long island. >> steve: what seems to be the number within sub that people order? >> blimpie's best. >> steve: is that what we have? >> that's the italian sub. >> steve: just a little bite right here. >> italian is my favorite. >> steve: by the way, if you're in the area, 48th and 6th avenue, stop by and you can have free breakfast on us. thank you very much, mark.

>> here. >> brian: free breakfast on us and it's a lunch item. >> steve: i think i'm going to need a breath mint. there is some onions on here. >> brian: steve, i have some floss in the bathroom. >> gretchen: bring some of that grub back in here, too, if you don't mind. >> brian: a blimpie sophisticated hero is what you mean. >> gretchen: oh. >> brian: what, are you in the military? >> gretchen: i saw military up here. it says we're gutting our military thanks to sequester. >> brian: it needs our helmets. >> gretchen: what's stopping the doj from throwing pizza parties. >> brian: we told you about miranda kerr hanging up her angel wings. this morning there is a twist to her wing. >> gretchen: breaking news. >> brian: i will tell you. this day calls you.

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sign up for your free trial today at constantcontact.com/try. >> steve: quick headlines. a member of the osama bin laden raid team will testify at the bradley manning trial. he says bin laden had documents bradley manning leaked to wikileaks. prosecutors say it shows manning aid the enemy. and we told you yesterday super model miranda kerr is walking away from victoria

secret. now victoria secret says they are the ones who fired her. she was canned. sources say she is difficult to deal with and was not a big seller compared to the other angels who apparently not divas. she's winking at us. brian, over to you. >> brian: gutting our military thanks to the sequester. but that's not stopping the doj from throwing $10,000 pizza parties and it only gets worse from there. >> gretchen: virginia congressman is chairman of the house judiciary committee. he was among the lawmakers at a hearing yesterday questioning wasteful spending at the department of justice. good to see you, sir. >> good to be with you, gretchen. >> gretchen: so let's lay everything out on the table. this wind of wasteful spending has been going on forever. it's under every administration. why are we suddenly and gladly i will say so myself, paying attention to it? >> it's important to pay attention to it all the time. i'm a strong supporter to the

author of the balanced budget amendment that we offer in the congress each year. the kinds of things that put pressure on government to look at these things on a regular basis are important. the sequestration is helping to do that. people are having to make tough decisions in every branch, in every department of our government and that's a good thing. one of the things that's very important to do is highlight the extreme examples of waste that are taking place and the justice department is certainly not exempt from that. >> brian: we know that the administration, according to the president, many have taken 5% pay cuts like $20,000 it adds up for the president. let's see where the money goes. how about to a pizza party? it cost hartford pd $10,000. you talk about flying in style, as you see, those conferences there, you have over $11 million in luxury private jets for the attorney general and the f.b.i. director. are these necessary expenditures?

>> no. absolutely not. you can add to that list $116,000 for sunglasses. that really is an eye opener. then the most egregious example at all is $165 million to purchase a prison in the president's home state of illinois, from the state of illinois, the taxpayers have paid for that in spite of the fact that we have four completely empty new federal prisons that have not yet been brought on-line of the it's going to cost $6 million a year to maintain this empty prison and another 70 million to make it operational, all unnecessary when you got four prisons that aren't being used right now. >> gretchen: what do we do about it? senator tom coburn does this every year. he comes out with this waste book and there is outrageous things in there and before you know it, we're to the next year and we're talking about it again. what can we actually do to stop it? >> well, first of all, the most important thing is for the congress to exercise oversite and then to take the information

and the appropriations committee and authorizing committees to go through and review the programs, deauthorize programs that aren't necessary. we have scores of programs just within the department of justice, each one addressing the same area, whether it's problems that communities are having with community policing, whatever. we don't need to have ten or 20 programs that are conceived by different members of congress. so we should be exercising our responsibility right here by using the appropriations committee and the authorizing committees to eliminate these programs. this year, we're gog have a complete oversight that includes reauthorization of the justice department. >> brian: when you eliminate those programs, we want you back to talk about some progress, okay? >> we'll be here. >> brian: okay. >> gretchen: thank you. there is a ton of information out there about allergies. what causes them, what can soothe them. what's fact and what's fiction? dr. mark siegle here with the

answer. >> brian: first on this day in history, 1949, "rock's dead" was the number one song with the look. what did i say? >> gretchen: 49. >> brian: sorry [ male announcer ] how do you measure happiness? by the armful? by the barrelful? e carful? how about...by the bowlful? campbell's soups give you nutrition, energy, and can help you keep a healthy weight. campbell's. it's amazing what soup can do. as well as they could because they don't take it with food. switch to citracal maximum plus d. it's the only calcium supplement that can be taken with or without food. my doctor recommends citracal maximum. it's all about absorption. my doctor recommends citracal maximum. but i wondered what a customer thought? describe the first me you met. you brought the flex in... as soon as i met fiona and i was describing the problem we were having with our rear brakes, she immediately triaged the situation, knew exactly what was wrong with it, the car was diagnosed properly, it was fixed correctly

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>> steve: spring is here and so are the headaches and sniffles and symptoms that come along with season a. what is true and what is a myth? here to clear the air about spring allergies is fox news medical a team dr. mark siegle. good morning to you. >> good to see you. >> steve: first of all, i heard this a million times and frequently this year already, winter doesn't affect spring allergies. fact or fiction? >> that's a myth. winter has everything to do with spring allergies. let's talk about pollen. pollen comes from the male part of the plant. so we get blamed for everything.

males are the irritant and that's the pollen situation. >> steve: it's a plant. you're calling yourself a plant? >> i'm not. but i'm related to one distantly. so it's a myth because in the winter, you get a period of a little warming up, that triggers allergy sufferers. even if you get cold after that, once it warms up again for good, like it is in april, bam, you get hit. more than 4,000 is the pollen count right now. allergy sufferers are miserable, it got triggered bay spot of warm winter. now, rain helps. i was checking with our weather person. the rain helps. so the rain will dampen down the allergy. >> steve: speaking of allergy, pollen allergies are linked to food allergies. i thought that was false. it's true! >> it's called oral allergy syndrome. there is a connection. there is certain connections like birch trees and ams and ragweed and cantaloupes and melons, directly connected. it's because you have the same response. >> steve: so if you're allergic to one, you maybe allergic to the other?

>> absolutely. it's raw fruit and you know it. if you have a response to the fruit, you have to avoid it or cook it. >> steve: no childhood allergies, you don't have them as a kid, you don't have to worry as an adult. that's a myth. >> absolutely a myth. because most of the time you know it if you're a kid. as you get older older and youre system changes, you can pick up seasonal allergies that you didn't have before. you think it's a cold. it's allergies. >> steve: you know what i should have done? gotten a massage. >> massages help everything. including allergies. here is why. stress increases histamines, which is allergies. so you decrease that stress with a massage, that helps. the aromatic part opens up your sinuses and the triggers for sinuses are in the back. so you massage the back, you open up the sinuses. >> steve: very nice. dr. siegle, thank you very much. blame us for everything. meanwhile, blame the irs. the irs is now collecting a whole lot more than taxes.

the agency says it can snoop on your e-mail. michelle malkin reacts. then a store owner brings a bat to a gun battle. guess who wins? the guy with the bat !

am. >> gretchen: good morning, everybody. it's thursday, april 11, 2013. i'm gretchen carlson. thank you so much for spending part of your day with us today. president obama continues to wine and dine republicans. another dinner last night trying to talk about his budget and immigration and gun control. can the charm offensive make up for the massive tax hikes and spending increases? michelle malkin is here to weigh in on that. >> steve: it's guns versus bat. one store owner refused to backr shot him. you're going to meet this guy straight ahead. it's quite a story. >> brian: right. if it wasn't bad enough, the irs is snooping on your facebook page, now reading your e-mails and is they say they don't need a warrant. >> steve: oh, good. >> brian: "fox & friends" starts

now. >> gretchen: good morning, everybody. hope you're gonna have a great thursday as you head into the weekend. >> brian: we have one happy crew. they work with us, that brings a smile to their face. the other thing is blimpie allowed them to have about 25 feet worth of the hero. >> steve: this just goes to show you how good our crew is. we had almost 50-foot subway -- >> brian: do you have a box there? >> steve: all 49 feet of the blimpie has disappeared. it was on that black table top. >> brian: the whole crew! >> gretchen: i have a feeling somebody else pilfered some of that. >> brian: it's all that's left. >> steve: very nice. by the way, it was delicious. >> brian: you had some, too? >> steve: yeah. absolutely. the reason they celebrate today is because -- in addition to blimpie being 50 years old, is the fact that it was on this day in history that they commissioned the uss holland,

which was the first sub. so a sub sandwich they go with today's date. >> brian: then soon after they invented the cold cut. the cold cut would be put on there. later tomorrow the history of lettuce. >> steve: great. >> gretchen: wow. i'll tune in for that. >> steve: welcome back to the food channel. >> gretchen: actually let's try and get a little news into the food talk with some headlines. he wanted his cable turned back on, so he held four firefighters hostage. he ended up paying for his actions with his life. he called 911 fake ago heart attack. five firefighters responded. when he arrived, he took them hostage by gun point. he let one go to move the truck. the swat team outside made a split second decision eventually when it looked like the firefighters were about to be killed. you hear the gun fire. the swat team stormed the home, exchanging fire with the suspect. the suspect was killed. one officer was shot in the

hand. the firefighters also suffered minor injuries. the gunman was having financial problems apparently. his power, his cable, his phone had been turned off. the u.s. sending this warning to north korea now. you're coming very close to crossing a dangerous line. north korea positioned two missile launchers on its east coast yesterday. the missiles which have a range of 2500 miles, could be launched at any time. >> what's significant about this test is they're apparently going to do it from a mobile launch platform, which means something they can move around and set up and launch much more quickly than if they have to put it on a launch pad that we can see from space. >> gretchen: the u.s. says it wants to tone down the rising tensions, but kim jong-un's regime is making it difficult. being allowed to pray with his friends, three times a day from behind bars, not enough for this guy, american taliban fighter john walker lindh, wants to be able to pray five times a day as required by his faith. his lawyers are getting support from the aclu and say not letting him pray that often

violates his freedom of religion. lend, convicted of fighting for the taliban is serving a 20 year prison sentence in indiana. store owner brings a bat to a gun battle and wins. the whole thing caught on camera. watch the video here. it starts with a robber holding a gun to the 62-year-old's throat. the owner tries to hit him with a bat. the second robber starts shooting. the problem is that the shooter hit the accomplice. the accomplice limps away and then the fight goes one on one. the owner gets a bullet in the leg and another person in the store gets involved, hitting the bad guy with a stool. then with a fire extinguisher. the end of the story is that the two robbers actually got away. this morning they're still on the loose. those are your headlines. >> steve: that was in chicago, by the way. >> brian: president obama continues to wine and dine

republicans to try and push his budget plan. but can the charm offensive make up for more than $1 trillion in tax hikes and spending increases? >> steve: i know who to talk to. wendell goler is on the lawn of the white house with details. >> what the president is hoping to do is pick up negotiations on a deficit reduction deal about where they broke down in december led to the sequester. he's offered a similar deal in his budget, which his aides say he know he'll have to compromise on of the house budget committee chair paul ryan believes the president should have moved closer to republicans over the past few months. >> we've got a debt crisis on the horizon and it's spending driven. so what does the president propose? $1 trillion spending increase, only to be eclipsed by a $1.1 trillion tax increase, so the total deficit reduction in this ten-year budget spending $46.5 million is $119 billion. >> the two sides don't even agree on the numbers. the white house says the budget raises half as much new tax

revenue as ryan claims. and hikes spending just a third as much. officials here claim the deficit will be cut 15 times as much as ryan says. the president hosted a dozen republican senators for dinner last night. they talked about the budget and other things over steak and salad. earlier, his budget director, the president's budge inject director said the spending plan balances cuts and investments for a reason. >> demonstrates that we do not have to choose between deficit reduction and economic growth. it shows that we can do both. indeed we must do both. the country won't prosper if we have unsustainable deficits, but it also won't prosper if our infrastructure is crumbling and our workers lack the skills to compete. >> neither side claimed a breakthrough at the dinner. both sides said it was constructive. white house said the president looks forward to doing it again. brian, gretchen, steve?

>> gretchen: all right. thank you very much. let's get michelle malkin in on this to see what she thinks about the charm offensive, phase two. what do you make of it? >> first of all, can we ban the term, charm owe finishes -- offensive? >> gretchen: sure. it's a dinner. president obama's state dinner. >> it's interesting, of course, because the left is up in arms. it looks like they consider this budget a quote, unquote, harm offensive. they don't want any entitlement cuts at all, of course. i think that there is a mistake being made strategically by some of these republicans who sound like progressives, reacting to what really are truly modest cuts in entitlements, balanced, quote, unquote, with rather stiff tax increases that will, hello, hit minorities and low income people the hardest. i'm talking, of course, about the tobacco taxes, the smoking taxes. >> steve: that's right. under the president's plan,

tobacco, cigarettes would have a 94-cent a pack increase. michelle, you were talking a little bit about modest decreases in the increase in the amount we're going to spend in social security. when he was still running against john mccain for president of the united states back in 2008, the guy who wound up being president, our current president, made it very clear, he would never do this chain cbi thing and we've got that embarrassing tape to rewind right now. watch this. >> john mccain's campaign has gone even further suggesting that the best answer for the growing pressures on social security might be the cost of living adjustmentses or raise the retirement age. let me be clear, i will not do either. >> gretchen: can't that be a way of changing? can't it be that the president looks -- isn't it a starting point, at least, to have these dinners, to put a budget out there with something the republicans can hold on to and maybe try to change? isn't that the way a first draft always looks, you always make

changes to it? >> sure. sure it does. he's always evolving and erasing and rewriting history. >> gretchen: i'm trying to look at it somewhat optimistically. >> i know. you're being overly fair, gretchen, and i appreciate that. and i would hope that the democrats appreciate it as well. but look, it's that phrase that always grates on people's nerves, of course, on both sides of the aisle now, let me be clear, because there is nothing clear about this man. well, it actual israeli very transparent, his lack of principles and his lack of honest commitment to fiscal responsibility in this country. look, we've got $100 billion in unfunded liabilities with these entitlement programs and i would think that the people who would be most up in arms are the young people whose pockets, whose wallets are being raided and being leveraged and mortgaged in the future. and the fact that there is so few adults willing to tackle the

problem and tell america to suck it up. >> brian: michelle, here is the thing, the president is doing all these meetings, unlike his first four years. karl rove writes in the "wall street journal" this is part of his plan to take back the house. he tried to give in and in the end when he gets nothing, because they seem so far away, it will help line up the planets in order for him to have the momentum to take the house in a year and a half. what do you think? >> yeah. karl rove is what i think. but i think that -- >> brian: you're lukewarm on that. >> i'm transparent about that. but look, one thing is true, this man in the white house has been musing openly about the possibility, dreaming about putting nancy pelosi back in power. if that doesn't unify the right, i don't know what will. i think it's definitely been underplayed just how important and critical it has been for the republicans to maintain control of that house.

i think the mid terms are going to be a very motivating factor in bringing the various warfare mongering factions of the party together. >> let's talk about the irs. people are not a fan of the irs and tax day is coming up on april 15. and they are now revealing that they can look at your personal e-mails, maybe not even with a warrant. what is happening to people's freedoms and obviously you don't agree with this. >> it is shocking and we only know about this as a result of an aclu foyer request. as a side note, i think we're lucky that we even have a fulfillment of that request, given how much undermining there has been of the freedom of information act law by this nontransparent white house. but i digress. the fact is that there has been lower court rulings of it have ruled that there should be warrants required when the irs rifles through our e-mail. but there hasn't been a supreme

court ruling on that yet. in the meantime, they've got this manual that basically gives them this overreaching power that is long if you got something in the cloud or in a third party e-mail provider, they can look at it with impunity. at the same time, i think people have to worry about even things like google, of course, which does say that it requires warrants or subpoenas or some sort of special judicial orders before they release or look through e-mail records. but there is no guarantee on that. it's very troubling in this internet world. there are very few guarantees of privacy. >> gretchen: let's talk about stacy dash. remember, she was somebody who took criticism for supporting mitt romney. now she's being attacked again when she talked about jay-z and beyonce? >> yeah. this is a story we have at twitchy.com a couple of days ago. she is an actress who is very outspoken now about her political views, sort of came out of the closet during the

campaign, and chastised a lot of her peers and younger americans by talking about the beyonce and jay-z. and as a reward for criticizing their visit to cuba, what does she get? an amazing amount of hate and vitriol for being a black conservative. that is something that, of course, we've been hearing a lot about on this network and we need to hear more of. just the kind of vile reaction they face for simply being honest about their views. >> steve: we've been monitoring that at twitchy.com. thank you very much. we'll see you back here next week. >> you bet. take care. >> brian: no need to take those tough classes. high schoolers now getting an opt out. yep, an opt out and have their education their own way. should we be letting teen-agers dictate their own curriculum? >> gretchen: if you're in the market for a new home. new construction is a whole other ball game. what you need to know, bob massi coming up next.

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>> steve: buying a brand-new home can be different than purchasing one that somebody else lived in once before and the process can often be daunting. here to break it down, once again, bob massi joining us from

vegas. how are you? >> brian: good. >> steve: okay. first question, if you are the buyer of a new home, do you need your own agent? >> you absolutely should have your own buyer's agent. shear why: the seller, the developer is basically representing their interests. you go in, you're excited. you want to buy this new home. you look at the model. they give think contract. you have nobody representing yourself as a fiduciary. i always encourage people, if they're going to buy a new home, get yourself a buyer's agent that can talk to you about the builder involved, the reputation of the development, what's going on in that area, talk about the growth in that area, and represent your interests. don't just depend on the seller's agent. >> steve: but bob, it's so handy! they're selling that great big new development and there is the little office right there and that person is going to win up representing you and the seller. >> absolutely. and generally when they're doing that, there has to be a

disclosure. and generally there is. and that's no disrespect to the seller's agents that are doing it. i'm just saying that if you're a buyer, particularly those of us who have gone through bad times in foreclosure, second time, shame on you. get somebody to be your fiduciary, represent your interests. >> steve: lightning round, when you buy a new house, do you have to use the builder's lender? >> no, you don't, steve. what they do is the builder, again, nothing wrong with this, they give you incentives to use their own lender. however, shop it. you don't know if you're getting the best deal with that lender. so go around. they don't care. i mean, they really don't care. you have the right to say, listen, i'm going to shop the price. i'm going to shop the interest rate. no problem. if you go around, you don't find a better deal, then use the lender and get the incentives they give. but don't just feel compelled and pressured to use the developer's lender. >> steve: absolutely. you'd be crazy to not

investigate. what about options and upgrades in new homes? >> this is the problem. i will tell you where all the money is lost and all the disputes occur is the language for upgrades and options when you're buying a new home. is that an option? how much do you want down for the options and upgrades? this is where the dispute always comes because the language in these contracts become confusing. go to the design center. you pick out the flooring. you pick out this. is that an upgrade or was it part of it? is it an option? please, please, any prospective buyers in a new home, that's why you need a fiduciary to help you with these type of things. >> steve: we think we know enough. we need help, though. >> never enough. >> steve: help from guys like you. thank you very much. >> all right. thank you. >> steve: 20 minutes after the top of the hour. it sounds like a made up story. a goat's head sent to the owner of the cubs at wrigley field. the story ahead in a minute. and then obamacare makes doctors and patients more lazy and could

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>> steve: quick headlines for you. bernie madoff's son blaming his father's crimes for his cancer. he says the shame of the ponzi scheme brought back his stage 4 lymphoma which was in remission for ten years. and a huge car recall affecting toyota, honda, nissan and mazda. the companies say nearly 3.4 million cars may have air bags that don't inflate. oh, oh stand by for news from your car dealer. >> gretchen: our next guest is a

form doctor who left his medical practice because he felt insurance companies made it impossible for him to care for his patients the way he wanted to. >> brian: now he says obamacare is only going to make matters worse when it comes to red tape and government regulations. now dr. ed mars is here. what way in which do you think obamacare will hurt the whole system? >> well, i think that it's complex and, of course, it attempts to address some serious issues which we do have, which include overall costs and so forth. but i'm a little bit reminded, you may remember the bill murray movie "caddy shack" where he had a degette mate problem with these gophers in his golf course, with you to use dynamite didn't seem to be the right way to go. i think it's a little bit like that. we've got problems, we need to dress them, but i think that this is the dynamite solution and i'm afraid that's going to end up actually causing more trouble than it helps.

>> gretchen: you started your practice, you went to medical school back in the '60s. you were doing your practice in the '70s and '80s and '90s. what sort of changes did you see? how did the medical field evolve that was upsetting to you? >> when i first started and i started as a pediatrician, there was no insurance actually available for pediatric care. so those of us who were practicing pediatrics had to deal on a day-to-day basis with the costs that actually were going to be paid out of pocket by the patients that we were taking care of. that meant that every transaction that we had required us to talk and think in some depth and to talk with patients about what the costs would be, what the risks might be, what the benefits might be. then as i mentioned in an article in the "wall street journal" earlier, the insurance companies came along and that was great from an income point of view for pediatricians because we realized that then we

could charge a third party and it didn't cost our patients directly anything, so it felt free to them. and that meant that a number of other things followed in a practice, including how one allocateed costs, whether one asked for additional consultations, whether you paid as much attention to medication costs and a variety of things of that sort. it also meant that issues like using a telephone for taking care of patients became a little less useful because there was no provision for collecting any return for telephone call. so all these things tended to subtly but in very important ways push the direction of the practice to being much less concerned about cost. but this is something that's gone on for a long time. i'll tell awe quick anecdote. when i was training, in 1961, in

a very good high quality teaching hospital, i remember being concerned about the fact that i noticed that just to be on the safe side, extra bags of i.v. fluids were ordered up for patients because you didn't know whether they were going to need it or not. it occurred to me that a number of these were being discarded. so i went to the building office and i said to the office, look, how about if you send every resident physician a copy of the bill when the patient is discharged so they can see exactly what the costs are. they said no thank you. we prefer to keep those costs. >> brian: when i go buy medicine, i have no idea how much it costs. all i know is my co-pay. i have no idea. everything seems fee. parents become more demanding and doctors don't seem to care about price. we'll see if obamacare collapses under its own weight. thank you so much. >> thank you very much. >> gretchen: no need to take

those tough classes anymore. high schoolers getting to opt out and have their education their own way? is that really a good idea? we'll tell you about that. >> brian: then no such thing as a free lunch, right, nicole? >> there is a controversy growing among tax experts. the free lunch that you get at work or the free coffee or the free bagels, should you be taxed for that? the tax man may come to get you after all. more on it after the break hi i'm terry, and i have diabetic nerve pain. i worked a patrol unit for 17 years in the city of baltimore. when i first started experiencing the pain, it's hard to describe because you have a numbness but yet you have the pain like thousands of needles sticking in your foot.

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>> steve: we've got a fox business alert. that's why, as you can see, screen left, nicole petallides from the "fox business" network. live at the new york stock exchange. what is the new weekly jobless number? >> we were waiting for these eagerly. last week was terrible, right? so we got in our numbers. so claims were 346,000. that was a little better than estimated for 365,000. you may remember last week, which was dismal, 385,000 on the heels of the tough jobs report we've gotten. so we are seeing u.s. stock index futures point to go a higher open. maybe the dow will open 15, 20 points higher. we're sitting at record levels. >> steve: that's right. one of the things about the big number that came out last week

was that about a half a million people had simply given up looking. some of it demographic, there are people who retired. but others just said look, i can't find a job. i'm out. >> right. and we noted that. as soon as those numbers hit on that friday, we talked exactly about that. the labor participation rate is that basically americans are frustrated and they say, i'm not even looking anymore. forget it. i'm done. you did note with the baby boomers, we have the retiring baby boomers. it's obviously a factor of the fact that americans are tired of looking. they're sort of really disappointed with what they're seeing. >> brian: i know you like to get to work early because the coffee there is free. you like -- like here, you get free coffee and you go down there it's free. does this mean you're going to get taxed for what you're taking? >> this is unbelievable. if you're all for the government and you want to tax everybody more, then great. but if you are an employee of a company that gives you free coffee and bagels.

at facebook, they give baby bonus money. if you have a new baby, the diapers might cost you. they give you extended leave. ever note, they've offered to clean your apartment two times a month. so you don't have to worry about a balance of work and life. how about google? free concierge service, free cafe with gourmet food. the idea is that now tax experts are look at the fact that maybe you should be taxed on these fringe benefits. so maybe you might see employers have to be forced to put this on your w-2. this is a noncash perk. the reason why a lot of these companies, particularly technology companies are doing this are in order to woo great talent. employers may be forced to cut it out. >> brian: it's amazing, too, because you have to buy the food. you have to pay tax when is you buy it. it's just free to the employees. >> it's meant to woo great

talent, keep them productive while at work. maybe worry a little less about something like cleaning your apartment. it's a great idea and great to have those fringe benefits and coveted perks. but you may have to pay on those. it's unbelievable. you never thought about this. i never thought about this. but this is what's been talking about. >> brian: women hemmer said he left cnn because we had free danish. >> i knew it! >> brian: this is a breaking story if you want to run with that. >> gretchen: it's a complete disincentive to other companies who may be looking at some of the other companies who have done this as an incentive and it's disincentive to these other companies because if they're taxed, they're not going to do it. >> that's exactly right. everybody is being taxed already. obviously more for health care and everything that's going on. but this is a whole new factor that we never even thought about. basically it's another way for the government to tax people who are working hard. when you're at work, maybe you need a cup of coffee, you're working ten hours. maybe can't run out and get it. >> steve: absolutely.

nicole petallides live at the new york stock he can change where they have free coffee and hit another high today. >> brian: and starbucks. >> that i pay for. let's not get crazy. >> brian: wow. >> steve: i think she needs a little decaf. >> brian: oh, my goodness. >> steve: thank you very much. we got an extreme weather alert right now. this incredible picture that we're about to show you snapped just as lightning struck the iconic gateway arch in st. louis, missouri. this morning, tens of thousands of people in the midwest waking up in the dark because their power was knocked out by high winds and in some cases twisters. now the storm is heading to the east where maria molina is standing by live at 48th and 6th avenue in new york city. >> good morning. good to see you. i'm not wearing a jacket. but you do need one now in new york city. it's been a warm past couple of days across northeast. but we're seeing the temperatures starting to drop and that's all thanks to our storm system that did produce all of that severe weather across sections of the midwest. look at this.

we've received over 250 reports of severe weather, from texas and louisiana, all the way up into sections of pennsylvania and even into new jersey. a very widespread area scene over the past 24 hours. we do have two areas that were hit hard by tornadoes yesterday. st. louis county and van buren county. van buren county in arkansas and that storm on the move headed eastbound, heavy rain for parts of texas, louisiana, up into the great lakes area. on the backside of this, anywhere between eight to 12 inches of snow across parts of minnesota. so we do have those winter storm warnings in effect as well. and steve, gretchen and brian, another big concern with this system has also been icing. we do have ice storm warnings as well in parts of minnesota. >> gretchen: all right. thank you very much. >> steve: we got headlines for you. a grim warning from the house intelligence committee about the next major cyber attack. it's already here. >> by the way, the chinese are probably on your computer, the russians are probable will he on

your personal computer. the iranians are already there. so they're trying to steal things that they think are valuable or use your computer to help them steal from someone else. that's a real problem. >> steve: that is a problem. what would those countries want from your computer? experts say they're trying to use it to hack companies and steal secrets that can be sold, of course. congressman rogers introduced a bill to crack down on that which heads to the floor next week. >> brian: will you reveal the russians have found in your e-mail? >> steve: we found this picture. >> brian: good. the man who was the voice of charlie brown pleaded guilty to stalking and threatening his ex-girlfriend and her plastic surgeon. peter robins admitted to calling his ex dozens of times a day, even threatening to kill her and her son if they didn't give back his car and dog. he made similar threats and demanded a refund for a plastic surgeon that did work on his former girlfriend. i'm so confused. >> steve: me, too. >> brian: sentence something set for next month. >> gretchen: high schoolers allowed to have their education

their way. that's right. state senators in florida approving a bill giving students three different kind of diplomas. the standard one, students don't have to tang vertebra 2, chemistry or pass three finals. next, the scholar diploma. they have to take all math and science courses, plus pass their finals. that must be what the regular one used to be. and the matter diploma. they would get job training and could skip classes like physics or chemistry. some parents giving this a failing grade. >> they need to learn and the world is not getting any easier. they need to learn so they can operate out there. >> gretchen: so that bill heads to the house for a vote. brian? >> brian: it's something out of a godfather movie. a goat's head was sent to cubs owner at wrigley field. it's believed it's an attempt to reverse the supposed curse for the 1945 world series against the tigers. >> steve: you think it will work? >> brian: i'm not sure, steve. a restaurant owner bought a goat to the game and was kicked out. he vowed the cubs would never win again and they have not won again. i know one thing, it wasn't good

for the goat. >> steve: bad for the goat. >> brian: we'll see if it's good for the cubs. >> gretchen: coming up, at least a dozen top military generals have left under president obama. so what's going on here? a general's shocking answer coming up next. >> steve: and the government is about to make things harder for already struggling college grads. peter johnson, jr. calls it the silence crisis. why isn't anybody talking about it? he talks about it next ♪ (announcer) wake them up with breakfast-favorite flavors like salmon, egg, cheese, and whole grain oats. friskiesnow serving breakfast. [ male announcer ] pain not sitting too well? burning to feel better? itching for relief? preparation h offers the most maximum strength solutions for all hemorrhoid symptoms. from the brand doctors recommend most. preparation h. don't stand for hemorrhoids.

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>> brian: quick headlines. fox news reporter trying to protect her source will not be tossed in jail. until august, at least. a judge postponed making a decision on jana winter's case until then. she revealed the movie massacre suspect james holmes sent his psychiatrist a notebook full of disturbing details. and donald trump set to be a grandfather again. ivanka trump reportedly pregnant with her second child. she and her husband have a daughter. baby number two expected to arrive in the fall. shear gretchen. >> gretchen: we told you yesterday interest rates on student loans set to double in the future. this will cost students $1,000 more a year. now for the first time, the federal reserve is saying student loan debt is a serious problem for the nation's economic growth. the reason why? take a look. right now there is more student loan debt than credit card debt in america. the only thing larger is home

loans. joining us live now with part 2 of the story, peter johnson, jr. so there is some new information that came out since we were talking about that increase yesterday. >> yes. the federal reserve is now saying what we were saying yesterday, that this is a terrible, terrible burden on younger americans and on their parents and grandparents who are helping them with these loans. people graduating college with average debility of 23, $24,000. scheduled to go up to 6.8%. the obama administration came up with a proposal yesterday by which student loan rates would be tied to the ten-year treasury rate. plus 1, 3, or 4%. depending upon the type of loan. so if interest rates are high, loan rates are going to be high. a lot of student leaders are saying there needs to be a cap because if you took the obama proposal and went back a couple of years, then people would be

paying 10, 11 and 12%. a lot of students are saying, wow, that's too much. this really needs to be catched going forward. >> gretchen: it's already a problem for a lot of families because i think this is one of the reasons you're seeing a lot of these kids come home to live with their families. number, unemployment so high for kids in their 20s, even after they graduate from college. then they have this huge debt facing them as they're trying to enter out into the world. >> 57% of students graduate with some amount of debt. the medical association of the united states are now saying it poses a terrible burden and conflict for a lot of people who want to be physicians in this country because they can't go forward and assume 200 or $225,000 worth of debt to go to medical school. i talked about the same issue i have with a young man in my office who wants to be a lawyer and he's trying to support his family at the same time. it's an intolerable burden. but now the federal government is realizing that we just can't ignore it and the government

cannot act as if it's a loan shark. what's happening, gretchen, is that they are borrowing at one tenth of 1% and then loaning this out to americans come july at almost 7%. other people would go to jail for that. that would be called being a loan shark. so we have to understand that it's important for our economy and our future that kids and their families have the opportunity to move forward. what i'm going to be talking about tomorrow is answering questions about how people can get out from under the student loan burden, what they can do in terms of deferments, what they can do, unfortunately, in terms of bankruptcy, what they can do to renegotiate. so we'll be talking about real solutions for real kids and real families tomorrow. and new ways that i don't think people have explored on national television before. >> gretchen: let me put the tease out there. if you're getting crushed by student loan, peter will address

some common questions tomorrow. are you taking e-mail questions or just going to take questions that you have put together? >> we're going to talk about deferments. we'll talk about forebearance. we'll talk about bankruptcy. we're going to be talking about renegotiating. we're going to be talking about all the ways in which you can make a go of it as a student in america. i think it's really, really important and i'm afraid the repercussions if we don't take these measures in this country going forward. >> gretchen: all right. we'll look forward to that. thanks so much. at least a dozen top military generals have left under president obama. so what's really going on here? one general thinks he has the answer and it's shocking. that's next

>> it is a big day for big issues facing our country and there are some new development this is morning in the battle over the second amendment, immigration, and the budget. we'll talk to john thune, senator sessions is with us, talk about that dinner that they

had last night. john thune was there. bret baier joins us on all of this, also this crazy weather. which part of it is headed towards you? i'll tell you at the top of the hour. we'll see you then. >> brian: where are the generals going? under president obama at least, a dozen top military generals have just left. just last month we lost highly decorated widely respected general james mad dog matus. relieved of his duties. he's been in charge of the central command for some time. what does this mean for the future of the military in let's ask retired u.s. air force general fox news contributor tom. general, welcome back. tell me what do you think is going on here? >> well, i don't think it's anything too far out of the normal. in the case of general matus, he was not treated properly, brian. normally, the chairman or the secretary of defense calls general matus because he was a combatant commander and say look, jim, we're going to announce your retirement tomorrow at 8:00 o'clock and

such and such venue. in this particular case, general matus was notified of the announcement after it came out in the media. that's not good form. that's not professional. >> brian: you think the leak and the breach was engineered by advisor tom donnellan? >> that's what the media is saying. general matus wanted more specificity on what we would do if the iranians crossed the red line, the threshold for going nuclear. frankly, he wasn't getting much guidance out of the national security council and mr. donnellan. i think that caused a great deal of friction because he had to respond to it and he wasn't getting guidance from that level. so there is the rumor, and clearly it was pretty well documented in the media, that tom donnellan and general matus had a conflict. those shouldn't come out that way. there has got to be a much more professional way to handle a senior leader.

>> brian: as we go on, here are some of the generals that exited under president obama. and it's not so much that they're gone and some of them were just going to retire anyway. it's how it's done. compare that to the way bill clinton handled yours. >> well, under president clinton, and that's when i retired -- but we had a great relationship with hisof defensel perry, secretary asman was in first. he was a real master and he knew all the generals and he had a great relationship. and that moved over into the white house. so i was running vice president gore's reinventing government, so i would be in the white house every two weeks. we had one little problem there, but not with me. but the fact is, there was a good relationship with that administration. >> brian: just more respect. overall, real quick, how does the military view the president, this administration? >> there is a great deal of tension because of sequester and

the way things are being handled on the funds and how we're handling our people. they could do it a lot better. look, president obama could have taken care of sequester very easily. but he has elected not to. so it's had a very bad impact on our military. >> brian: thanks so much. >> thanks, brian. >> brian: he's speaking out because those in the military are not. "fox & friends" wraps up in three minutes [ male announcer ] this is betsy. her long day of pick ups and drop offs begins with arthritis pain... and a choice. take up to 6 tylenol in a day or just 2 aleve for all day relief. all aboard. ♪

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